Section 8 Fair Market Rent (FMR) for ZIP 07017 - 2027

Investment Score for ZIP 07017

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,460
1 Bedroom	$1,640
2 Bedrooms	$1,990
3 Bedrooms	$2,490
4 Bedrooms	$2,830
5 Bedrooms	$3,283
6 Bedrooms	$3,677
7 Bedrooms	$3,971
8 Bedrooms	$4,170

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,990	$341,440	0.58%	F
3BR	$2,490	$478,074	0.52%	F
4BR	$2,830	$540,255	0.52%	F
5BR	$3,283	$577,844	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07017 (East Orange, NJ) #### Section 8 Voucher Dynamics In ZIP code 07017, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1970 per month for 2026. However, the Zillow median price for a two-bedroom home in this area is $335,189, which translates to a price-to-FMR ratio of 14.2x. This indicates that the actual market rent for a two-bedroom unit could be significantly higher than the FMR, potentially reaching around $28,000 annually. For Section 8 voucher holders, this means they would face substantial constraints in finding affordable housing, as landlords might be unwilling to accept vouchers due to the high disparity between FMR and market rent. The FMR for a three-bedroom apartment is $2470, while for a four-bedroom it is $2800. These figures represent a significant portion of the median household income in East Orange, which stands at $58,853. Specifically, the FMR for a two-bedroom unit constitutes about 40.2% of the median income, indicating that even at FMR levels, many residents might struggle to afford decent housing. #### Affordability & Renter Profile Given that 66.2% of households in East Orange are renters, the demand for rental properties is quite high. The occupancy rate of 95.4% further supports this conclusion, suggesting that the rental market is tight and there is little room for vacancy. The high percentage of renters combined with the relatively low median household income points to a population that is largely dependent on affordable housing options. The FMRs, however, do not fully reflect the reality of market rents, making it challenging for many residents to find suitable housing without financial assistance. The median household income of $58,853 suggests that most residents are middle to lower-middle class, with a significant portion likely relying on government assistance such as Section 8 vouchers. Given that the FMR for a two-bedroom unit is already 40.2% of the median income, any increase above FMR would make housing unaffordable for many residents. #### Investor Angle From an investor perspective, the ZIP code 07017 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1970, but the actual market rent could be much higher, possibly exceeding $28,000 annually. This means that if an investor can secure a property at or below the FMR, they could potentially achieve positive cash flow by renting it out at market rates. However, the high price-to-FMR ratio also implies that competition for tenants willing to pay market rates is fierce, and many potential tenants may only be able to afford rents at or near FMR levels. To determine the investment grade, we must consider the tightness of the market and the likelihood of securing tenants. With an occupancy rate of 95.4%, the market appears to be robust, and there is a strong demand for rental units. However, the high percentage of renters and the limited income of many residents suggest that the risk of vacancy is higher compared to areas with a more balanced tenant profile. #### Specific Actionable Insights 1. **Focus on Units Near FMR Levels**: Investors should focus on acquiring properties where the rent is close to or slightly above the FMR. For example, a two-bedroom unit rented at $2000-$2200 per month would still attract a significant number of tenants while providing a reasonable profit margin. This strategy balances affordability with profitability. 2. **Consider Multi-Family Properties**: Given the high demand for rentals and the tight market conditions, multi-family properties could offer better returns. A building with multiple units, each rented at FMR levels, would provide a steady stream of income and reduce the risk of vacancy affecting overall cash flow. 3. **Explore Government Programs**: Investors should explore additional government programs that might subsidize rents beyond the Section 8 voucher program. This could include other forms of housing assistance that help bridge the gap between FMR and market rents, making properties more attractive to potential tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 07017 presents a mixed picture. While the high demand for rental properties and the tight market suggest strong potential for occupancy, the significant gap between FMR and market rents poses a challenge. The recommendation for investors would be to **Hold** properties that are already rented at or near FMR levels, as these are likely to remain occupied. However, acquiring new properties at these levels may be difficult due to the high price-to-FMR ratio. Investors looking to enter the market should carefully evaluate the potential for cash flow and consider diversifying their portfolio with a mix of market-rate and subsidized units.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.